Apprentice and trainee salaries and wages


Generally, wages paid or payable to all apprentices and trainees are subject to payroll tax.

However, wages paid or payable by a prescribed not-for-profit Group Training Organisation (GTO) to apprentices who meet the criteria for funding as a ‘new entrant’ are exempt from payroll tax when the apprentice is on-hired to a client of the GTO under an employment agency contract arrangement.

For wages paid or payable from 1 July 2018, it does not matter whether the GTO is a ‘for profit’ or ‘not-for-profit’. For wages paid or payable before 1 July 2018, only wages paid by a not-for-profit GTO are exempt, wages paid by ‘for profit’ training organisations are subject to payroll tax.


If you need more information on this topic, contact our payroll tax enquiry service on 13 21 61.